BENGALURU: Gold held its ground on Tuesday after touching a six-month peak, buoyed by expectations the US Federal Reserve has concluded its interest rate hikes, ahead of the release of key economic data.

Spot gold was steady at $2,013.59 per ounce by 1306 GMT, after hitting its highest since May 16 earlier in the session. US gold futures for December delivery rose 0.1% to $2,013.90 per ounce.

“Gold continues to derive support from a broadly weaker dollar and falling Treasury yields as expectations mount over the Fed cutting interest rates in 2024,” FXTM senior research analyst Lukman Otunuga said.

“A sense of caution ahead of another busy week for global financial markets is also lending support to the precious metal. Given how the $2,000 level has proved an extremely tough resistance to conquer, gold could end up dipping without a potent fundamental catalyst.”

The dollar index touched its lowest since late August, making gold less expensive for holders of other currencies. The 10-year Treasury yield hovered near a two-month low of 4.3630%.

Traders widely expect the US central bank to hold rates in December, and are pricing in about a 50-50 chance of cuts in May next year, CME’s FedWatch Tool shows.

Lower interest rates reduce the opportunity cost of holding the non-interest-bearing bullion. Investors are also eyeing the US Personal Consumption Expenditures (PCE) data on Thursday, the Fed’s preferred inflation gauge, for further cues on interest rate outlook.

Also on the radar is the revised US third-quarter GDP figures, due on Wednesday.